Which of the following is most likely a drawback of contract manufacturing?
A) There are low chances of quickly starting the process.
B) There is decreased control over the manufacturing process.
C) There are significant political and economic risks involved.
D) There is little opportunity of later forming a partnership.
E) There is no possibility of buying out the local manufacturer.

Question

Quizplus · Accepted Answer

Contract manufacturing involves outsourcing the manufacturing process to a third-party manufacturer. This may result in decreased control over the quality of the product being manufactured. The company may not have direct access to the manufacturing process and may not be able to make changes or monitor quality as closely as if they were producing the product in-house. This can be a significant drawback of contract manufacturing. The other options mentioned are not necessarily drawbacks of contract manufacturing.

Which of the Following Is Most Likely a Drawback of Contract